The basics

To be able to accept payment, a website visitor visits a website such as http://www.digitalfilipino.com and access a product page. If interested, the visitor clicks on the order or buy button. Afterwards, the order gets redirected to the payment gateway and/or acquirer website to process it for approval. Also check with the credit card issuer for sufficient funds and, if approved, debit the respective credit card account.

Becoming an e-commerce merchant

There are a few steps that one has to take in becoming an e-commerce merchant. This can vary from very lenient to very strict. Such as:

Business potential. Your business model, past and projected sales are taken into consideration.

Trading and credit history. Some check the credit and trading history of the people behind the entity applying for a merchant account.

Surety bond or deposit required. Some require merchants to post a fixed amount that is on hold for the duration of the relationship. This can also be used to cover for charge back or refunds, if necessary.

Depending on the number of products you’re selling, think twice whether you wanted to sell your products directly or go through other channels.

If you’re still starting, you can join existing online sites and offer them commissions to sell your products. This way, you don’t have to worry about the infrastructure immediately. This can be a good alternative until you’re able to set up your own and you’re satisfied with the response of the market.

There are so many ways on how entrepreneurs can accept payments online. This can be in the form of cash, credit card, remittance services, mobile payments, among others. The mechanics are becoming much more friendly and there’s certainly one that can suit your needs.

Cash and Credit card

Offers ATM, mobile, credit, cash, Paypal, international bank debit, among others in its system. Charges will depend on type of account. It has an initial set-up fee of P25,000 and up depending on business model. Transaction charges ranges depending on solution availed of.

Offers credit card, cash (BancNet, remittance centers, Globe GCash, Smart Money), Paypal, regional, China payments, among others in its system. Packages are dependent on what payment options and features you want to be activated.

Credit card

Following are some online services accepting credit card payments online.

Courier services with payment collection

Some of the local courier service providers offer payment collection as part of their service. Although the information is not directly published on their site on the rates and scope of this service. Best to inquire directly on the arrangement that can be made.

Big or small – there is a payment solution for you

This payment acceptance aspect has to be taken seriously. If your business will be dependent on purchases made online, having this unresolved can break your business. The good news is there are now many payment providers available ready to accommodate individuals who just wants to earn a sideline up to those who intends to generate high sales volume on a daily basis.

The potential is there. Conduct due diligence and continuous research to find the right payment gateway that suit your needs.

There are a lot of considerations that you have to take once you start going to a full online business. From web site hosting, affiliate/consumer marketing, advertising, payment, fulfillment, legal responsibilities/liabilities. But the choices are very much available and friendly unlike before.

For inquiries about this lesson, contact Janette Toral by sending her a private message via Facebook.